VDOT Prequalification

Suzanne Lucas

Construction Division

VDOT Prequalification for Highway

Contractors in the Commonwealth of

Virginia

2

What is Prequalification?

“AASHTO defines a prequalification system as a

means of not only pre-determining job experience and

work capacity but also to serve as a means of

identifying individuals and organizations from whom

the agency may be accepting a bid.”

AASHTO encourages the use of prequalification

procedures in its Suggested Guidelines for

Strengthening Bidding and Contract Procedures.

(a copy of this document will be handed out at the end of the

Presentation)

AASHTO =American Association of State Highway

and Transportation Officials 3

What is VDOT’s Prequalification

Program?

VDOT's Contractor Prequalification Program ensures

that all contracts for the construction, improvement

and maintenance of Virginia's transportation system

are awarded to the lowest responsive and responsible

bidder.

Highway construction and maintenance contracts

advertised and let by the Construction Division

require prospective bidders to be prequalified.

4

VDOT’s 2007 Road and Bridge

Specifications definition

Prequalification.

“The procedure used by the Department to assure itself of

the Contractor’s ability to perform the work with attention to

quality and safety including his experience in similar work,

and sufficiency of equipment to accomplish the work and

that the Contractor’s financial resources will permit financing

the cost in accordance with the Rules Governing

Prequalification Privileges.”

(Note these rules are posted on the Prequalifiction Webpage)

5

What does the Code of Federal

Regulations indicate about

prequalification of contractors?

23CFR §635.110 Licensing and qualification of

contractors states:

( c ) “…..Prequalification of contractors may be required

as a condition for submission of a bid or awarded of

contract only if the period between the date of

issuing a call for bids and the date of opening of

bids affords sufficient time to enable a bidder to

obtain the required prequalification rating.”

6

What does the Code of Virginia

indicate about prequalification of

Highway Contractors?

§ 2.2-4317. Prequalification generally; prequalification for

construction.

Item 7, E. The provisions of subsections B, C, and D shall not apply

to prequalification for contracts let under § 33.1-12.

§ 33.1-12. General powers and duties of Board, etc.; definitions.

The Commonwealth Transportation Board shall be vested with

the following powers and shall have the following duties:

(2)(b) “….Such objective criteria will include requirements for

prequalification of contractors and competitive bidding

processes. These contracts shall be of such size and scope to

encourage maximum competition and participation by agency

prequalified and otherwise qualified contractors.” 7

What does VDOT’s Road and Bridge

Specifications indicate on who

should be Prequalified?

SECTION 102—BIDDING REQUIREMENTS AND CONDITIONS

102.01—Prequalification of Bidders

All prospective Bidders, including all members of a joint

venture, must prequalify with the Department

All subcontractors must be prequalified prior to performing

any work on the contract- (VDOT recognizes subcontractors

as first tier subs)

Contractors eligible for DBE credit under Special Provision

for Section 107.15, DBE federal-aid contract subcontractors

must be VDOT prequalified and DMBE certified at the time

of bid submission.

8

What does VDOT’s Road and Bridge

Specifications indicate on who is not

required to be Prequalified?

SECTION 102—BIDDING REQUIREMENTS AND CONDITIONS

102.01—Prequalification of Bidders indicates:

Contractors may be waived by a project-specific provision

in the bid proposal

Not required if performing work items noted in the

proposal as "Specialty Items“

Not required if subcontractors only performing a service as

defined by the Code of Virginia-

9

Examples of firms supplying services

Firms supplying “services only” do not

need to be prequalified Examples of services are:

• Engineering Design

• Inspection

• Surveying

• Traffic control

• Hauling

• Materials supply

• Shop fabrication 10

Prequalification Rules and

Regulations

The rules for prequalification reflect

VDOT’s commitment to

• Safety

• Quality Construction

• Ability to perform (on time)

• Increased Competition

11

Work Classes

Work classes are determined by work history

and equipment readily available

VDOT promotes firms to gain work experience

in other areas therefore a firm is not limited to

the Work Classes listed on their prequalified list

posting.

As long as the firm proves their ability to

perform work in other Work Classes by readily

available expert work force and equipment. 12

Safety

Safety is an integral and essential part of

becoming, and remaining prequalified.

Safety evaluation includes:

• Industry standard Experience Modification Rate

(EMR)

• OSHA logs

• Contractor’s safety program

• Contractor’s safety violations by any governmental

agency 13

Quality

Quality Level

Contractor’s Performance Evaluations

A CPE Annual/Final is done on every contractor or

subcontractor (first tier) on every project every year.

A Contractor needs an aggregate score of 85% or

better in order to be a considered for the highest

Prequalification level

14

Prequalification Levels

Five levels of prequalification

1. Full Prequalification

• Safety Index Score is at least 70 & CPE aggregate score at

least 85%

• As much as a firm can be bonded for

2. Conditional Prequalification

• For firms with failing Safety Index Score and/or CPE scores

• No more than one job under $1 million

3. Currently Inactive Prequalification

• For firms with no work history with VDOT

• No more than 3 jobs; each must be valued under $2 million

( so < $6M total)

15

Prequalification Levels

(continued)

4. Probationary Prequalification

• For Newly prequalified firms with no work history with VDOT

• No more than 3 jobs; each must be valued under $2 million (

so < $6M total)

5. Subcontractor only

• Does not meet minimum criteria to bid as a Prime

• No established safety or work history

* A firm’s level does not affect how much work can be

undertaken as a subcontractor

16

How is a firm’s level calculated?

A firm’s prequalification score is

calculated by:

70% (Aggregate CPE Annual/Final score)

+ 30% (Safety Index Score/3)

P = 80 +

PC = 70 +

PP/PCI= 75+

Denied= -70

17

Evaluation of a Contractor’s

Application

Considerations for prequalification:

Registered with the State Corporation

Commission

In accordance with the VA CODE § 2.2-4311.2

a firm shall be registered in “good standing”

with the Commonwealth of Virginia’s State

Corporation Commission (SCC) to transact

business in the Commonwealth.

18

Evaluation of a Contractor’s

Application

Work History

Current contracts on hand as a Prime & Sub

Past three years of completed projects

Safety History

Established EMR ratings for the past 6 years

OSHA 300 & 300A for three past completed

years

19

Evaluation of a Contractor’s

Application

Equipment

Readily available to perform the work

Finances

Liabilities vs. Assets

20

Hand-outs

1.Suggested Guidelines for Strengthening

Bidding and Contract Procedures

2.Prequalification Levels Worksheet

Descriptions

3.Safety Index Rating Form

4.Prequalification Process Webpage

21

Prequalification Webpage

• Go to the website www.VirginiaDOT.org

• Click on Business Center in the header

• Scroll down to Engineering and Support

Pick “Construction Division”

• Under the Procurement Phase, select Prequalification

• Click on the link “For Prequalification Information and

references Web Page”

• Or go directly to

http://www.virginiadot.org/business/const/prequal.asp

22

QUESTIONS??

23